Supplemental information for the quarter ended

EX-99.2 3 dex992.htm SUPPLEMENTAL INFORMATION FOR THE QUARTER ENDED Supplemental information for the quarter ended

Exhibit 99.2

LOGO

Supplemental Information

June 30, 2009

Supplemental Information

Table of Contents

June 30, 2009


Schedule		Page


Summary and Corporate Information		i, ii and iii

Consolidated Statements of Income		1
Funds from Operations and Additional Information		2
Consolidated Balance Sheets		3
Components of Net Asset Value		4
Components of Discontinued Operations		5
Capitalization		6
Long-Term Debt Summary		7
Long-Term Debt Detail		8
Portfolio Summary		9, 10 and 11
Occupancy Trends		12
Leasing Statistics		13, 14 and 15
Leasing Statistics by Market		16
Rental Rate Comparisons by Market		17
Lease Expirations		18 and 19
Office Lease Expirations by Market by Quarter		20
Industrial Lease Expirations by Market by Quarter		21
Office Lease Expirations by Market by Year		22
Industrial Lease Expirations by Market by Year		23
Customer Diversification		24
Same Property Performance		25
Disposition Activity		26
Development Activity		27
Development Land		28
Acquisition Activity		29
Unconsolidated Joint Ventures Assets, Debt and Liabilities		30
Unconsolidated Joint Ventures Income (Three Months)		31
Unconsolidated Joint Ventures Income (Six Months)		32
Joint Ventures Long-Term Debt Detail		33
Joint Ventures Portfolio Summary		34
Joint Ventures Lease Expirations		35
Joint Venture Acquisition and Disposition Activity		36

The information within refers to all Highwoods Properties’ wholly-owned entities, except pages 30 to 36, unless noted otherwise. Wholly-owned entities include properties classified as both continuing operations and discontinued operations.

All financial information contained in this document is unaudited. In addition, certain matters discussed in this supplemental, including estimates of net operating income, pre-leasing commitments and the cost, timing and stabilization of announced development projects, are forward-looking statements within the meaning of the federal securities laws. Although Highwoods believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that could cause actual results to differ materially from Highwoods’ current expectations include general economic conditions, local real estate conditions, the timely development and lease-up of properties, and other risks listed at the end of our second quarter earnings press release and detailed from time to time in the Company’s SEC reports. Highwoods assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

This supplemental also includes non-GAAP financial measures, such as Funds From Operations (FFO) and net operating income (NOI). Definitions of FFO and NOI and an explanation of management’s view of the usefulness and risks of FFO and NOI can be found toward the end of the second quarter earnings press release.


Highwoods Properties, Inc.		TOC		6/30/09

Summary

Amounts in thousands, except per share amounts


	*Three Months Ended*
	06/30/09			03/31/09			12/31/08			09/30/08			06/30/08

Shares and units:

Common shares outstanding at end of period		70,848			63,763			63,572			63,545			57,632
Common units outstanding at end of period		4,059			4,067			4,067			3,906			3,933
Weighted average common shares outstanding - basic		66,122			63,631			63,563			58,998			57,456
Weighted average common shares outstanding - diluted		70,234			67,705			67,568			63,228			61,822

Share price:

At end of period	$	22.37		$	21.42		$	27.36		$	35.56		$	31.42
High close during period		26.13			26.17			34.29			37.94			37.38
Low close during period		20.34			16.57			15.59			29.88			31.42

Financial information:

Land sale gains, net of (impairments)	$	124		$	—		$	(1,565	)	$	1,727		$	89
Gains on for sale residential condominiums, net of partner’s interest		295			550			4,301			—			—
Lease termination income		171			1,138			216			436			26
Straight line rental income		718			1,534			701			967			1,892
Capitalized interest		1,317			1,504			1,399			2,106			2,221
Impairments on depreciable properties		—			—			(32,442	)		—			—
Gain on debt extinguishment 2/		630			—			—			—			—
Gains on disposition of depreciable properties		21,794			92			6,685			3,155			5,045

Funds from operations per share - diluted	$	0.70		$	0.70		$	0.20		$	0.71		$	0.68

Funds from operations per share - diluted, excluding certain items 1/	$	0.69		$	0.70		$	0.67		$	0.71		$	0.68

Wholly - owned property information:

In-Service rentable square feet:
Office		19,988			19,594			19,556			19,416			19,416
Industrial		6,463			6,463			6,467			6,049			6,299
Retail		909			1,337			1,350			1,342			1,343

Total		27,360			27,394			27,373			26,807			27,058

In-Service occupancy:
Office		89.0	%		89.1	%		90.2	%		90.3	%		90.8	%
Industrial		84.5	%		87.9	%		92.6	%		95.2	%		91.4	%
Retail		90.7	%		93.2	%		94.6	%		93.6	%		93.5	%

Total		88.0	%		89.0	%		91.0	%		91.6	%		91.1	%

1/	Excludes impairments on depreciable assets, gain/(loss) on debt extinguishments, and preferred stock redemption/repurchase charges.

2/	June 30, 2009 amount includes $781 representing the Company’s share of a gain recorded by an unconsolidated joint venture.


Highwoods Properties, Inc.		i		6/30/09

Corporate Information


Board of Directors		Research Coverage

O. Temple Sloan Jr., Chairman		Bank of America/Merrill Lynch
Thomas W. Adler		Jamie Feldman - 212-449-6339
Gene H. Anderson
Edward J. Fritsch		Citigroup Global Markets
David J. Hartzell, Ph.D.		Michael Bilerman - 212-816-1383
Lawrence S. Kaplan
Sherry A. Kellett		Credit Suisse - North America
L. Glenn Orr Jr.		Steve Benyik - 212-538-0239

Corporate Officers		Deutsche Bank
		John Perry - 212-250-4912
Edward J. Fritsch
President, Chief Executive Officer and Director		Friedman, Billings, Ramsey & Co., Inc.
		Wilkes Graham - 703-312-9737
Michael E. Harris
Executive Vice President and Chief Operating Officer		Green Street Advisors
		Cedric Lachance - 949-640-8780
Terry L. Stevens
Senior Vice President, Chief Financial Officer		Macquarie Research
		Nick Pirsos - 212-231-2457
Daniel L. Clemmens
Vice President, Chief Accounting Officer		RBC Capital Markets
		Dave Rodgers - 440-715-2647
S. Hugh Esleeck
Treasurer		RW Baird
		Chris Lucas - 703-821-5780
Peter T. Jardine
Vice President, Corporate Marketing		Stifel Nicolaus
		John Guinee - 443-224-1307
Carman J. Liuzzo		Erin Aslakson - 443-224-1350
Vice President, Investments
		Wells Fargo Securities, LLC
Art H. McCann		Brendan Maiorana - 443-263-6516
Chief Information Officer

Jeffrey D. Miller
Vice President, General Counsel and
Secretary

Kevin E. Penn
Vice President, Strategy

Michael D. Starchville
Vice President, Asset Management

Tabitha N. Zane
Vice President, Investor Relations and
Corporate Communications


Highwoods Properties, Inc.		ii		6/30/09

Corporate Information


Divisional Officers		Corporate Headquarters
		Highwoods Properties, Inc.
Atlanta, GA		3100 Smoketree Court, Suite 600
James V. Bacchetta, Vice President		Raleigh, NC 27604
		919-872-4924
Kansas City, MO
Glenn E. Stephenson, Vice President		Stock Exchange
		NYSE Trading Symbol: HIW
Memphis, TN
Steven L. Guinn, Vice President		Investor Relations Contact
		Tabitha Zane
Nashville, TN; Memphis, TN; Greenville, SC		Vice President, Investor Relations and Corporate Communications
W. Brian Reames - Senior Vice President		Phone: 919-431-1529
		Fax: 919-431-1439
Orlando, FL		E-mail: tabitha.zane@highwoods.com
Steven J. Garrity, Vice President
		Information Request
Piedmont Triad, NC		To request a standard Investor Relations package, Annual
E. F. “Rick” Dehnert, Vice President		Report or to be added to our e-mail, please contact the
		Corporate Communications/IR Specialist at:
Raleigh, NC		Email: HIW-IR@highwoods.com
Thomas “Skip” Hill, Vice President
		The Company
Richmond, VA		Highwoods Properties, Inc., a member of the S&P MidCap 400 Index, is a fully integrated, self-administered and self-managed equity real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. As of June 30, 2009, the Company owned or had an interest in 378 in-service office, industrial and retail properties encompassing approximately 35.2 million square feet. Highwoods also wholly-owned 580 acres of development land. Highwoods is based in Raleigh, North Carolina, and its properties and development land are located in Florida, Georgia, Iowa, Maryland, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, and Virginia. For more information about Highwoods Properties, please visit our website at www.highwoods.com.
Paul W. Kreckman, Vice President

Tampa, FL
Daniel E. Woodward, Vice President

LOGO


Highwoods Properties, Inc.		iii		6/30/09

Consolidated Statements of Income

Amounts in thousands, except per share amounts


	*Six Months Ended*						*Three Months Ended*
	06/30/09			06/30/08			06/30/09			03/31/09			12/31/08			09/30/08			06/30/08

Rental and other revenues	$	227,123		$	224,041		$	113,310		$	113,813		$	114,855		$	113,145		$	112,828

Operating expenses:
Rental property and other expenses		80,352			78,233			39,458			40,894			43,206			40,995			40,501
Depreciation and amortization		65,960			61,096			32,931			33,029			32,458			31,535			30,749
Impairment of assets held for use		—			—			—			—			32,846			—			—
General and administrative		17,801			20,477			9,486			8,315			8,681			8,885			10,766

Total operating expenses		164,113			159,806			81,875			82,238			117,191			81,415			82,016

Interest expense:
Contractual		40,524			46,808			19,945			20,579			23,055			22,995			23,345
Amortization of deferred financing costs		1,351			1,324			689			662			678			714			686
Financing obligations		1,445			1,504			710			735			631			783			764

		43,320			49,636			21,344			21,976			24,364			24,492			24,795

Other income:
Interest and other income		3,291			2,389			2,284			1,007			419			1,017			1,597
Gain on debt extinguishment		630			—			630			—			—			—			—

		3,921			2,389			2,914			1,007			419			1,017			1,597

Income/(loss) before disposition of property and condominiums and equity in earnings of unconsolidated affiliates		23,611			16,988			13,005			10,606			(26,281	)		8,255			7,614

Net gains/(losses) on disposition of property		213			107			194			19			(1,071	)		1,745			107
Gains on for sale residential condominiums 1/		636			—			289			347			5,617			—			—
Equity in earnings of unconsolidated affiliates		3,162			3,509			1,862			1,300			1,155			1,214			1,520

Income/(loss) from continuing operations		27,622			20,604			15,350			12,272			(20,580	)		11,214			9,241
Discontinued operations:
Income from discontinued operations		1,636			3,390			781			855			1,124			1,373			1,745
Gains on disposition of discontinued operations		21,016			8,753			20,943			73			6,595			3,137			5,027

		22,652			12,143			21,724			928			7,719			4,510			6,772


Net income/(loss)		50,274			32,747			37,074			13,200			(12,861	)		15,724			16,013
Net (income)/loss attributable to noncontrolling interests in the Operating Partnership		(2,748	)		(1,732	)		(2,054	)		(694	)		967			(812	)		(839	)
Net (income) attributable to noncontrolling interests in consolidated affiliates		(134	)		(389	)		(116	)		(18	)		(1,451	)		(201	)		(191	)
Dividends on preferred stock		(3,354	)		(5,676	)		(1,677	)		(1,677	)		(1,677	)		(2,451	)		(2,838	)
Excess of preferred stock redemption cost over carrying value		—			—			—			—			—			(108	)		—

Net income/(loss) available for common stockholders	$	44,038		$	24,950		$	33,227		$	10,811		$	(15,022	)	$	12,152		$	12,145


Earnings per common share - diluted:
Income/(loss) from continuing operations available for common stockholders	$	0.35		$	0.23		$	0.19		$	0.16		$	(0.35	)	$	0.13		$	0.10
Income from discontinued operations available for common stockholders		0.33			0.20			0.31			0.01			0.11			0.08			0.11

Net income/(loss) available for common stockholders	$	0.68		$	0.43		$	0.50		$	0.17		$	(0.24	)	$	0.21		$	0.21


Weighted average common shares outstanding - diluted		68,978			61,625			70,234			67,705			63,563			63,228			61,822




Dividends declared and paid per common share	$	0.850		$	0.850		$	0.425		$	0.425		$	0.425		$	0.425		$	0.425


Net income/(loss) available for common stockholders:
Income/(loss) from continuing operations available for common stockholders	$	22,706		$	13,596		$	12,767		$	9,939		$	(22,276	)	$	7,925		$	5,811
Income from discontinued operations available for common stockholders		21,332			11,354			20,460			872			7,254			4,227			6,334

Net income/(loss) available for common stockholders	$	44,038		$	24,950		$	33,227		$	10,811		$	(15,022	)	$	12,152		$	12,145

1/	After adjusting for our partner’s share, which is reflected in “Net income attributable to noncontrolling interest in consolidated affiliates”, net gains to the Company were $295 and $845 for the three and six months ended June 30, 2009, respectively.


Highwoods Properties, Inc.		1		6/30/09

Funds from Operations

and Additional Information

Amounts in thousands, except per share amounts


	*Six Months Ended*						*Three Months Ended*
	06/30/09			06/30/08			06/30/09			03/31/09			12/31/08			09/30/08			06/30/08

Funds from operations:
Net income/(loss)	$	50,274		$	32,747		$	37,074		$	13,200		$	(12,861	)	$	15,724		$	16,013
Net (income)/loss attributable to noncontrolling interests in the Operating Partnership		(2,748	)		(1,732	)		(2,054	)		(694	)		967			(812	)		(839	)
Net (income) attributable to noncontrolling interests in consolidated affiliates		(134	)		(389	)		(116	)		(18	)		(1,451	)		(201	)		(191	)
Dividends on preferred stock		(3,354	)		(5,676	)		(1,677	)		(1,677	)		(1,677	)		(2,451	)		(2,838	)
Excess of preferred stock redemption cost over carrying value		—			—			—			—			—			(108	)		—

Net income/(loss) available for common stockholders		44,038			24,950			33,227			10,811			(15,022	)		12,152			12,145
Add/(deduct):
Depreciation and amortization of real estate assets		65,026			60,095			32,440			32,586			31,985			31,064			30,305
(Gains) on disposition of depreciable properties		(89	)		(18	)		(70	)		(19	)		(90	)		(18	)		(18	)
Noncontrolling interests from the Operating Partnership		2,748			1,732			2,054			694			(967	)		812			839
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		6,473			6,330			3,223			3,250			3,285			3,136			3,395
(Gains) on disposition of depreciable properties		(781	)		—			(781	)		—			—			—			—
Discontinued operations:
Depreciation and amortization of real estate assets		550			1,386			155			395			570			575			624
(Gains) on disposition of depreciable properties		(21,016	)		(8,753	)		(20,943	)		(73	)		(6,595	)		(3,137	)		(5,027	)

Funds from operations	$	96,949		$	85,722		$	49,305		$	47,644		$	13,166		$	44,584		$	42,263


Funds from operations per share - diluted
Net income/(loss) available for common stockholders	$	0.68		$	0.43		$	0.50		$	0.17		$	(0.24	)	$	0.21		$	0.21
Add/(deduct):
Depreciation and amortization of real estate assets		0.94			0.98			0.46			0.47			0.47			0.49			0.49
(Gains) on disposition of depreciable properties		—			—			—			—			—			—			—
Unconsolidated affiliates:
Depreciation and amortization of real estate assets		0.09			0.10			0.05			0.05			0.05			0.05			0.05
(Gains) on disposition of depreciable properties		(0.01	)		—			(0.01	)		—			—			—			—
Discontinued operations:
Depreciation and amortization of real estate assets		0.01			0.02			—			0.01			0.01			0.01			0.01
(Gains) on disposition of depreciable properties		(0.30	)		(0.14	)		(0.30	)		—			(0.10	)		(0.05	)		(0.08	)

Funds from operations per share - diluted	$	1.41		$	1.39		$	0.70		$	0.70		$	0.19		$	0.71		$	0.68


Weighted average shares outstanding - diluted		68,978			61,625			70,234			67,705			67,568			63,228			61,822


Additional information: 1/

Funds from operations, excluding certain items 2/	$	96,319		$	85,722		$	48,675		$	47,644		$	45,608		$	44,692		$	42,263



Funds from operations per share, excluding certain items 2/	$	1.40		$	1.39		$	0.69		$	0.70		$	0.67		$	0.71		$	0.68


Straight line rental income	$	(2,252	)	$	(4,296	)	$	(718	)	$	(1,534	)	$	(701	)	$	(967	)	$	(1,892	)
Amortization of lease incentives		548			486			250			298			258			297			264
Depreciation of non-real estate assets		608			698			327			281			308			306			285
Ground lease straight line rent		173			85			48			125			38			42			42
Amortization of stock-based compensation		3,573			3,940			1,731			1,842			1,432			1,345			1,713
Amortization of deferred financing costs		1,351			1,324			689			662			679			714			686
Amortization of accumulated other comprehensive loss		(141	)		126			(71	)		(70	)		7			48			46
Harborview non-cash FMV charge		(94	)		(70	)		(47	)		(47	)		(35	)		(35	)		(35	)

Non-incremental revenue generating capital expenditures paid: 3/
Building improvements		(3,446	)		(5,641	)		(2,524	)		(922	)		(12,502	)		(4,059	)		(3,169	)
2nd generation tenant improvements		(10,098	)		(14,552	)		(4,716	)		(5,382	)		(6,744	)		(5,780	)		(4,327	)
2nd generation lease commissions		(4,026	)		(6,427	)		(1,746	)		(2,280	)		(3,295	)		(2,455	)		(3,057	)

Common dividends and unit distributions paid		(57,526	)		(52,009	)		(28,844	)		(28,682	)		(28,667	)		(26,281	)		(26,027	)

1/	Increase or (decrease) to cash flows.

2/	Excludes impairments on depreciable assets, gain/(loss) on debt extinguishments, and preferred stock redemption/repurchase charges.

3/	Excludes capital expenditures paid for buildings sold prior to June 30, 2009.


Highwoods Properties, Inc.		2		6/30/09

Consolidated Balance Sheets

Dollars in thousands


	06/30/09			12/31/08
Assets:
Real estate assets, at cost:
Land	$	349,386		$	352,872
Buildings and tenant improvements		2,808,834			2,819,844
Development in process		67,563			61,938
Land held for development		99,232			98,946

		3,325,015			3,333,600
Less-accumulated depreciation		(743,753	)		(714,224	)

Net real estate assets		2,581,262			2,619,376
For sale residential condominiums		19,660			24,284
Real estate and other assets, net, held for sale		1,249			1,242
Cash and cash equivalents		13,372			13,757
Restricted cash		14,707			2,258
Accounts receivable, net		18,050			23,687
Notes receivable, net		3,330			3,602
Accrued straight-line rents receivable, net		81,764			79,979
Investment in unconsolidated affiliates		66,631			67,723
Deferred financing and leasing costs, net		70,055			73,216
Prepaid expenses and other assets		36,683			37,046

Total Assets	$	2,906,763		$	2,946,170


Liabilities, Noncontrolling Interests in the Operating Partnership and Equity:
Mortgages and notes payable	$	1,428,650		$	1,604,685
Accounts payable, accrued expenses and other liabilities		134,202			135,609
Financing obligations		34,758			34,174

Total Liabilities		1,597,610			1,774,468
Noncontrolling interests in the Operating Partnership		90,796			111,278
Equity:
Preferred stock		81,592			81,592
Common stock		708			636
Additional paid-in capital		1,783,645			1,616,093
Distributions in excess of net earnings		(649,326	)		(639,281	)
Accumulated other comprehensive loss		(4,327	)		(4,792	)

Total Stockholders’ Equity		1,212,292			1,054,248
Noncontrolling interests in consolidated affiliates		6,065			6,176

Total Equity		1,218,357			1,060,424

Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity	$	2,906,763		$	2,946,170


Highwoods Properties, Inc.		3		6/30/09

Components of Net Asset Value

As Released on February 11, 2009 — See Note Below

Dollars in thousands

Note: The purpose of providing the following information at the beginning of each year is to enable readers to derive their own estimate of net asset value. The Company updates this information annually based on management’s assumptions regarding projected current year net operating income as of the date of initial publication (current year being February 11, 2009) and will not be updated to reflect any facts, circumstances or changes in financial or operating assumptions that may occur during the year. This information is not intended to be an asset-by-asset or enterprise valuation.


Consolidated Properties Projected Net Operating Income (NOI) 1/
Office	$	230,671
Retail		28,914
Industrial/Other		20,404
Deduct Partner’s Share of Consolidated JV’s (Office)		(5,529	)

Total Net Operating Income	$	274,460


Highwoods’ Share of Unconsolidated Joint Ventures Projected NOI
Office	$	30,577


Other income
Development, leasing and management fees	$	4,502


Add Other assets:
Development investment at cost	$	204,299
Assets not fairly valued by capitalized NOI valuation method 2/		108,822
Property held for sale at net sales price		1,400
Land held for development at market value		142,802
Cash and cash equivalents		13,757
Highwoods share of unconsolidated JV’s cash and cash equivalents		20,032
Restricted cash		2,258
Accounts receivable, net		23,687
Notes receivable and prepaid expenses		40,648
Deduct partner’s share of Consolidated JV’s other assets		(1,218	)

Other assets total	$	556,487


Deductions:
Total liabilities	$	135,609
Mortgages and notes payable		1,604,685
Deduct partner’s share of Consolidated JV’s liabilities and mortgages		(36,811	)
Market value of debt adjustment 3/		(271,860	)
Preferred stock, at liquidation value		81,592
Highwoods’ share of unconsolidated joint ventures liabilities		259,778

	$	1,772,993


Estimated diluted common shares and common units for 2009 (000’s)		67,639

1/	Projected 2009 NOI excludes straight line income, lease termination fee income, NOI related to completed not stabilized developments, and NOI related to assets undervalued by capitalized NOI method.

2/	Consolidated Properties projected 2009 NOI is adjusted to eliminate the net NOI for properties for which a NOI capitalization approach is not appropriate. For these assets, an alternative methodology has been applied.

3/	In accordance with prior practice, we included an adjustment to mark our debt and bonds to estimated fair value as of December 31,2008.


Highwoods Properties, Inc.		4		6/30/09

Components of Discontinued Operations

Dollars in thousands


	*Six Months Ended*				*Three Months Ended*
	06/30/09		06/30/08		06/30/09		03/31/09		12/31/08		09/30/08		06/30/08

Rental and other revenues	$	3,535	$	7,773	$	1,384	$	2,151	$	2,919	$	3,133	$	3,698

Operating expenses:
Rental property and other expenses		1,351		3,016		448		903		1,234		1,188		1,337
Depreciation and amortization		550		1,386		155		395		570		575		624

Total operating expenses		1,901		4,402		603		1,298		1,804		1,763		1,961

Other income		2		19		—		2		9		3		8

Income before gains on sales of discontinued operations		1,636		3,390		781		855		1,124		1,373		1,745
Net gains on sales of discontinued operations		21,016		8,753		20,943		73		6,595		3,137		5,027

Net income from discontinued operations	$	22,652	$	12,143	$	21,724	$	928	$	7,719	$	4,510	$	6,772


Highwoods Properties, Inc.		5		6/30/09

Capitalization

Dollars, shares, and units in thousands


	6/30/09		3/31/09		12/31/08		9/30/08		6/30/08
Long-Term Debt (see pages 7 & 8):	$	1,428,650	$	1,619,276	$	1,604,685	$	1,588,954	$	1,732,082


Financing Obligations:	$	34,758	$	34,509	$	34,174	$	35,195	$	35,145


Preferred Stock (at liquidation value):
Series A 8 ⁵/8% Perpetual Preferred Stock	$	29,092	$	29,092	$	29,092	$	29,092	$	82,937
Series B 8% Perpetual Preferred Stock		52,500		52,500		52,500		52,500		52,500


Total preferred stock	$	81,592	$	81,592	$	81,592	$	81,592	$	135,437


Common Shares and Units Outstanding:
Common stock outstanding		70,848		63,763		63,572		63,545		57,632
Noncontrolling interest partnership units		4,059		4,067		4,067		3,906		3,933


Total common shares and units outstanding		74,907		67,830		67,639		67,451		61,565

Stock price at period end	$	22.37	$	21.42	$	27.36	$	35.56	$	31.42

Market value of common equity	$	1,675,670	$	1,452,919	$	1,850,603	$	2,398,558	$	1,934,372


Total market capitalization with debt and obligations	$	3,220,670	$	3,188,296	$	3,571,054	$	4,104,299	$	3,837,036

See pages 30 to 36 for information regarding Highwoods’ Joint Ventures.


Highwoods Properties, Inc.		6		6/30/09

Long-Term Debt Summary

Dollars in thousands


	6/30/09			3/31/09			12/31/08			9/30/08			6/30/08
Balances Outstanding:

Secured:
Conventional fixed rate 1/	$	523,560		$	631,207		$	634,317		$	638,032		$	640,557
Variable rate debt		43,733			34,540			20,869			31,954			47,087

Secured total		567,293			665,747			655,186			669,986			687,644

Unsecured:
Fixed rate bonds and notes		595,857			599,029			648,999			648,968			648,938
Bank term loans		157,500			157,500			137,500			137,500			137,500
Credit facility		108,000			197,000			163,000			132,500			258,000

Unsecured total		861,357			953,529			949,499			918,968			1,044,438

Total	$	1,428,650		$	1,619,276		$	1,604,685		$	1,588,954		$	1,732,082


End of Period Weighted Average Interest Rates:

Secured:
Conventional fixed rate		6.37	%		6.61	%		6.61	%		6.62	%		6.61	%
Variable rate debt		1.20	%		1.41	%		1.73	%		3.94	%		4.01	%

Secured total		5.97	%		6.34	%		6.45	%		6.49	%		6.44	%

Unsecured:
Fixed rate bonds		6.40	%		6.40	%		6.53	%		6.53	%		6.53	%
Bank term loans		2.75	%		2.83	%		2.66	%		4.38	%		3.53	%
Credit facility		1.11	%		1.34	%		2.39	%		4.02	%		3.43	%

Unsecured total		5.07	%		4.77	%		5.26	%		5.85	%		5.37	%

Average		5.43	%		5.41	%		5.75	%		6.12	%		5.79	%

Maturity Schedule:


	*Future Maturities of Debt*							Average
Year	Secured Debt 2/			Unsecured Debt		Total Debt 2/		Interest Rate
2009	$	3,788		$	—	$	3,788	5.69	%
2010		41,741	3/		108,000		149,741	1.13	%
2011		—			137,500		137,500	2.58	%
2012		217,094			20,000		237,094	6.69	%
2013		260,283			—		260,283	5.90	%
2014		36,230			—		36,230	5.79	%
2015		—			—		—	—
2016		8,157			—		8,157	7.67	%
2017		—			395,857		395,857	5.85	%
2018		—			200,000		200,000	7.50	%

Total maturities	$	567,293		$	861,357	$	1,428,650	5.43	%

Weighted average maturity = 5.0 years

1/	Includes a $22.1 million loan related to a consolidated 20% owned joint venture (Harborview) and $36.2 million in loans at June 30, 2009 related to a consolidated 50% joint venture (Markel).

2/	All periods exclude annual principal amortization.

3/	Maturity date does not reflect two one-year extension options.


Highwoods Properties, Inc.		7		6/30/09

Long-Term Debt Detail

Dollars in thousands

Secured Loans


Lender	Rate			Maturity Date		Loan Balance 6/30/09		Undepreciated Book Value of Assets Secured
Northwestern Mutual		7.05	%		Jan-12	$	189,062	$	301,211
Northwestern Mutual		6.03	%		Mar-13		131,997		183,381
Massachusetts Mutual Life Ins. Co. 1/		5.68	%		Dec-13		117,264		214,226
PNC/Regions/Union Bank of California/U.S. Bank 2/ 3/		1.17	%		Dec-10		41,741		58,864
Metropolitan Life Ins. Co. 4/		6.06	%		Oct-12		22,133		39,108
Principal Life Insurance Company 5/		5.79	%		Jan-14		11,106		14,408
Principal Life Insurance Company 5/		5.79	%		Jan-14		11,106		18,781
Massachusetts Mutual Life Ins. Co. 1/		6.48	%		Dec-13		10,425
Principal Life Insurance Company 5/		5.74	%		Jan-14		8,756		14,174
Union Realty Co.		7.65	%		Feb-16		8,157		16,332
Lutheran Brotherhood		6.80	%		Apr-12		5,900		8,036
Principal Life Insurance Company 5/		5.89	%		Jan-14		5,261		7,514
Royal Bank of Canada 2/		1.72	%		Dec-09		1,992		19,660
Security Life of Denver		8.85	%		Aug-09		1,796		9,691
American United Life		9.00	%		Jun-13		597		3,325

		5.97	%				567,293	$	908,711


Unsecured Bonds
Bonds		5.85	%		Mar-17		395,857
Bonds		7.50	%		Apr-18		200,000

		6.40	%				595,857

Unsecured Loans
Credit facility 2/		1.11	%		May-10		108,000
Bank term loan 2/		2.58	%		Feb-11		137,500
BB&T term loan 2/		3.90	%		Mar-12		20,000

		2.08	%				265,500



Total Debt		5.43	%			$	1,428,650

Revolving Credit Facility
Name of Lender	Total Commitment			Amount Outstanding at 6/30/09		Unfunded Commitment at 6/30/09
Bank of America, N.A.	$	50,000		$	12,000	$	38,000
Branch Banking and Trust Co.		50,000			12,000		38,000
Wachovia Bank, N.A. 6/		50,000			12,000		38,000
Wells Fargo Bank, N.A.		50,000			12,000		38,000
Emigrant Bank		35,000			8,400		26,600
Eurohypo AG, New York Branch		35,000			8,400		26,600
PNC Bank, N.A.		30,000			7,200		22,800
Regions Bank		30,000			7,200		22,800
Comerica Bank		25,000			6,000		19,000
RBC Bank		25,000			6,000		19,000
Union Bank of California, N.A.		25,000			6,000		19,000
US Bank		20,000			4,800		15,200
First Horizon Bank		15,000			3,600		11,400
Chevy Chase Bank		10,000			2,400		7,600

	$	450,000		$	108,000	$	342,000

1/	These two loans are secured by the same assets.

2/	Floating rate loans based on one month libor.

3/	Maturity date does not reflect two one-year extension options.

4/	Loan relates to a consolidated 20% owned joint venture (Harborview).

5/	Loans relate to a consolidated 50% owned joint venture (Markel).

6/	Wells Fargo acquired Wachovia effective December 31, 2008.


Highwoods Properties, Inc.		8		6/30/09

Portfolio Summary – Wholly-Owned Properties Only 1/

(Rentable Square Feet)


	6/30/09		3/31/09		12/31/08		9/30/08		6/30/08
Office Industrial & Retail
In-Service:
Office 2/	19,988,000		19,594,000		19,556,000		19,416,000		19,416,000
Industrial	6,463,000		6,463,000		6,467,000		6,049,000		6,299,000
Retail 3/	909,000		1,337,000		1,350,000		1,342,000		1,343,000

Total 4/	27,360,000		27,394,000		27,373,000		26,807,000		27,058,000


Development Completed - Not Stabilized:
Office 2/	373,000		665,000		665,000		873,000		428,000
Industrial	200,000		200,000		—		418,000		418,000
Retail	—		—		—		—		—

Total	573,000		865,000		665,000		1,291,000		846,000


Development - In Process:
Office 2/	258,000		358,000		358,000		358,000		803,000
Industrial	—		—		200,000		200,000		200,000
Retail	—		—		—		—		—

Total	258,000		358,000		558,000		558,000		1,003,000

Total:
Office 2/	20,619,000		20,617,000		20,579,000		20,647,000		20,647,000
Industrial	6,663,000		6,663,000		6,667,000		6,667,000		6,917,000
Retail 3/	909,000		1,337,000		1,350,000		1,342,000		1,343,000

Total 4/	28,191,000		28,617,000		28,596,000		28,656,000		28,907,000


Same Property
Office 2/	18,794,000		18,794,000		18,794,000		18,794,000		18,794,000
Industrial	5,782,000		5,782,000		5,782,000		5,782,000		5,782,000
Retail	878,000		878,000		878,000		878,000		878,000

Total	25,454,000		25,454,000		25,454,000		25,454,000		25,454,000


Percent Leased/Pre-Leased:
In-Service:
Office	89.0	%	89.1	%	90.2	%	90.3	%	90.8	%
Industrial	84.5	%	87.9	%	92.6	%	95.2	%	91.4	%
Retail	90.7	%	93.2	%	94.6	%	93.6	%	93.5	%

Total	88.0	%	89.0	%	91.0	%	91.6	%	91.1	%


Development Completed - Not Stabilized:
Office	41.6	%	64.2	%	64.2	%	69.4	%	73.6	%
Industrial	50.0	%	50.0	%	—		91.0	%	72.0	%
Retail	—		—		—		—		—

Total	44.6	%	60.9	%	64.2	%	76.4	%	72.8	%


Development - In Process:
Office	52.4	%	65.7	%	65.7	%	65.7	%	63.5	%
Industrial	—		—		50.0	%	50.0	%	50.0	%
Retail	—		—		—		—		—

Total	52.4	%	65.7	%	60.1	%	60.1	%	60.8	%


Same Property
Office	88.9	%	89.2	%	90.3	%	90.5	%	91.0	%
Industrial	84.7	%	87.2	%	93.0	%	95.6	%	91.3	%
Retail	90.4	%	93.3	%	96.8	%	95.7	%	95.8	%

Total	88.0	%	88.9	%	91.1	%	91.9	%	91.2	%

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Substantially all of our Office properties are located in suburban markets.

3/	Excludes 205,000 square feet of basement space in the Country Club Plaza and other Kansas City Retail properties.

4/	Excludes minor “for rent” apartment building.


Highwoods Properties, Inc.		9		6/30/09

Portfolio Summary

(Continued)

As of June 30, 2009

Summary by Location, Wholly-Owned Properties Only 1/:


Market	Rentable Square Feet		Occupancy		Percentage of Annualized Cash Revenue 2/
Market	Rentable Square Feet		Occupancy		Office		Industrial		Retail		Total
Raleigh 3/	4,004,000		83.7	%	15.7	%	—		—		15.7	%
Atlanta	5,653,000		91.4	%	11.7	%	4.0	%	—		15.7	%
Nashville	2,997,000		95.0	%	14.4	%	—		—		14.4	%
Tampa	2,658,000		90.8	%	14.1	%	—		—		14.1	%
Kansas City	1,508,000	4/	89.3	%	3.4	%	—		6.8	%	10.2	%
Richmond	2,228,000		92.0	%	8.9	%	—		—		8.9	%
Piedmont Triad 5/	5,526,000		78.2	%	6.0	%	2.7	%	0.2	%	8.9	%
Memphis	1,472,000		93.1	%	6.4	%	—		—		6.4	%
Greenville	897,000		90.5	%	3.4	%	—		—		3.4	%
Orlando	317,000		98.7	%	1.7	%	—		—		1.7	%
Other	100,000		90.5	%	0.6	%	—		—		0.6	%

Total	27,360,000		88.0	%	86.3	%	6.7	%	7.0	%	100.0	%

Summary by Location, Including Joint Venture Properties:


	Rentable				Percentage of Annualized Cash Revenue 2/ 6/
Market	Square Feet		Occupancy		Office		Industrial		Retail		Multi-Family		Total
Atlanta	6,488,000		89.6	%	11.7	%	3.5	%	—		—		15.2	%
Raleigh	4,818,000		85.5	%	14.5	%	—		—		—		14.5	%
Nashville	2,997,000		95.0	%	12.7	%	—		—		—		12.7	%
Tampa	2,863,000		91.0	%	12.7	%	—		—		—		12.7	%
Kansas City	2,227,000	4/	89.3	%	4.0	%	—		6.1	%	—		10.1	%
Richmond	2,641,000		93.3	%	8.5	%	—		—		—		8.5	%
Piedmont Triad	5,890,000		76.0	%	5.5	%	2.4	%	0.2	%	—		8.1	%
Memphis	1,472,000		93.2	%	5.7	%	—		—		—		5.7	%
Orlando	2,169,000		89.0	%	4.8	%	—		—		—		4.8	%
Des Moines	2,505,000		86.8	%	3.1	%	0.5	%	0.1	%	0.4	%	4.1	%
Greenville	897,000		90.6	%	3.0	%	—		—		—		3.0	%
Other	100,000		90.5	%	0.5	%	—		—		—		0.5	%
Charlotte	148,000		100.0	%	0.1	%	—		—		—		0.1	%

Total	35,215,000		87.6	%	86.8	%	6.4	%	6.4	%	0.4	%	100.0	%

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Annualized Cash Revenue is June, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

3/	Raleigh Market encompasses Raleigh, Durham, Cary, and Research Triangle metropolitan area.

4/	Excludes 205,000 square feet of basement space in the Country Club Plaza and other Kansas City Retail properties.

5/	Piedmont Triad Market encompasses Greensboro, Winston-Salem metropolitan area.

6/	Includes Highwoods’ share of Joint Venture Annualized Cash Revenue, see page 33.


Highwoods Properties, Inc.		10		6/30/09

Portfolio Summary – Wholly-Owned Properties Only

(Continued)

As of June 30, 2009


	Office Properties 1/					Industrial
Market	Rentable Square Feet	Occupancy		Percentage of Office Annualized Cash Revenue 2/		Rentable Square Feet	Occupancy		Percentage of Industrial Annualized Cash Revenue 2/
Raleigh	4,004,000	83.7	%	18.1	%	—	—		—
Nashville	2,997,000	95.0	%	16.6	%	—	—		—
Tampa	2,658,000	90.8	%	16.4	%	—	—		—
Atlanta	2,571,000	90.2	%	13.6	%	3,082,000	92.3	%	59.6	%
Richmond	2,228,000	92.0	%	10.3	%	—	—		—
Memphis	1,472,000	93.1	%	7.4	%	—	—		—
Piedmont Triad	2,105,000	79.2	%	7.0	%	3,381,000	77.3	%	40.4	%
Kansas City	639,000	88.0	%	4.0	%	—	—		—
Greenville	897,000	90.5	%	3.9	%	—	—		—
Orlando	317,000	98.7	%	2.0	%	—	—		—
Other	100,000	90.5	%	0.7	%	—	—		—

	19,988,000	89.0	%	100.0	%	6,463,000	84.5	%	100.0	%


	Retail
Market	Rentable Square Feet	Occupancy		Percentage of Retail Annualized Cash Revenue 2/
Kansas City 3/	869,000	90.3	%	96.6	%
Piedmont Triad	40,000	100.0	%	3.4	%

	909,000	90.7	%	100.0	%

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Annualized Cash Revenue is June, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

3/	Excludes 205,000 square feet of basement space in the Country Club Plaza and other Kansas City Retail properties.


Highwoods Properties, Inc.		11		6/30/09

Occupancy Trends – Office, Industrial and Retail Properties 1/


Market	Measurement	6/30/09		3/31/09		12/31/08		9/30/08		6/30/08
Atlanta	Rentable Square Feet	5,653,000		5,552,000		5,552,000		5,552,000		5,552,000
	Occupancy	91.4	%	91.9	%	93.4	%	93.2	%	92.0	%
	Current Properties 2/	91.2	%	91.9	%	93.3	%	93.2	%	92.0	%

Greenville	Rentable Square Feet	897,000		897,000		897,000		897,000		897,000
	Occupancy	90.5	%	93.8	%	94.4	%	94.4	%	91.4	%
	Current Properties 2/	90.5	%	93.8	%	94.4	%	94.4	%	91.4	%

Kansas City 3/	Rentable Square Feet	1,508,000		1,936,000		1,953,000		1,955,000		1,956,000
	Occupancy	89.3	%	90.8	%	92.3	%	91.6	%	91.3	%
	Current Properties 2/	89.3	%	90.3	%	93.1	%	92.4	%	92.1	%

Memphis	Rentable Square Feet	1,472,000		1,472,000		1,473,000		1,337,000		1,337,000
	Occupancy	93.1	%	92.5	%	92.5	%	93.0	%	93.5	%
	Current Properties 2/	93.5	%	92.8	%	92.7	%	93.0	%	93.5	%

Nashville	Rentable Square Feet	2,997,000		2,997,000		2,988,000		3,181,000		3,181,000
	Occupancy	95.0	%	95.2	%	95.0	%	94.8	%	94.9	%
	Current Properties 2/	95.0	%	95.2	%	94.7	%	95.4	%	95.4	%

Orlando	Rentable Square Feet	317,000		317,000		317,000		317,000		317,000
	Occupancy	98.7	%	97.4	%	98.4	%	98.4	%	98.4	%
	Current Properties 2/	98.7	%	97.4	%	98.4	%	98.4	%	98.4	%

Piedmont Triad	Rentable Square Feet	5,526,000		5,526,000		5,526,000		5,108,000		5,358,000
	Occupancy	78.2	%	81.8	%	86.1	%	88.4	%	85.9	%
	Current Properties 2/	78.7	%	81.0	%	85.7	%	88.4	%	85.2	%

Raleigh	Rentable Square Feet	4,004,000		3,711,000		3,711,000		3,711,000		3,711,000
	Occupancy	83.7	%	85.5	%	88.6	%	89.9	%	89.7	%
	Current Properties 2/	82.7	%	85.5	%	88.6	%	89.9	%	89.7	%

Richmond	Rentable Square Feet	2,228,000		2,228,000		2,229,000		2,230,000		2,230,000
	Occupancy	92.0	%	91.3	%	90.8	%	90.0	%	92.1	%
	Current Properties 2/	92.0	%	91.3	%	90.8	%	90.0	%	92.1	%

Tampa	Rentable Square Feet	2,658,000		2,658,000		2,627,000		2,419,000		2,419,000
	Occupancy	90.8	%	88.7	%	91.6	%	92.2	%	94.5	%
	Current Properties 2/	91.0	%	89.2	%	92.3	%	92.2	%	94.4	%


Total 4/	Rentable Square Feet	27,260,000		27,294,000		27,273,000		26,707,000		26,958,000
	Occupancy	88.0	%	89.0	%	91.0	%	91.6	%	91.1	%

	Current Properties 2/	88.1	%	89.0	%	91.0	%	91.7	%	91.1	%

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Only includes properties that were owned and in-service for all periods shown.

3/	Excludes 205,000 square feet of basement space in the Country Club Plaza and other Kansas City Retail properties.

4/	Excludes a 100,000 square foot building located in South Florida.


Highwoods Properties, Inc.		12		6/30/09

Leasing Statistics

Office Portfolio 1/


	Three Months Ended
	6/30/09 2/			3/31/09 3/			12/31/08 4/			9/30/08 5/			6/30/08 6/			Average
Net Effective Rents Related to Re-leased Space:
Number of lease transactions (signed leases)		95			104			129			96			113			107
Rentable square footage leased		737,490			546,833			868,233			471,486			997,600			724,328
Square footage of Renewal Deals		622,050			430,986			703,690			330,751			913,530			600,201
Renewed square footage (% of total)		84.3	%		78.8	%		81.0	%		70.2	%		91.6	%		82.9	%
New Leases square footage (% of total)		15.7	%		21.2	%		19.0	%		29.8	%		8.4	%		17.1	%

Weighted average per rentable square foot over the lease term:
Base rent	$	19.06		$	19.52		$	21.21		$	20.84		$	22.47		$	20.62
Tenant improvements		(0.87	)		(2.12	)		(1.21	)		(1.35	)		(1.16	)		(1.34	)
Leasing commissions 7/		(0.44	)		(0.47	)		(0.60	)		(0.51	)		(0.63	)		(0.53	)
Rent concessions		(0.39	)		(0.40	)		(0.35	)		(0.22	)		(0.28	)		(0.33	)

Effective rent		17.36			16.53			19.05			18.76			20.40			18.42
Expense stop		(5.74	)		(6.83	)		(6.07	)		(6.64	)		(7.12	)		(6.48	)

Equivalent effective net rent	$	11.62		$	9.70		$	12.98		$	12.12		$	13.28		$	11.94

Weighted average term in years		3.6			4.1			4.7			4.5			3.2			4.0



Capital Expenditures Related to Re-leased Space:

Tenant Improvements:
Total dollars committed under signed leases	$	3,304,902		$	4,619,505		$	5,973,249		$	3,041,354		$	5,224,995		$	4,432,801
Rentable square feet		737,490			546,833			868,233			471,486			997,600			724,328

Per rentable square foot	$	4.48		$	8.45		$	6.88		$	6.45		$	5.24		$	6.12


Leasing Commissions:
Total dollars committed under signed leases 7/	$	1,361,976		$	1,002,735		$	2,463,135		$	970,896		$	2,300,840		$	1,619,916
Rentable square feet		737,490			546,833			868,233			471,486			997,600			724,328

Per rentable square foot	$	1.85		$	1.83		$	2.84		$	2.06		$	2.31		$	2.24


Total:
Total dollars committed under signed leases	$	4,666,878		$	5,622,240		$	8,436,384		$	4,012,250		$	7,525,835		$	6,052,718
Rentable square feet		737,490			546,833			868,233			471,486			997,600			724,328

Per rentable square foot	$	6.33		$	10.28		$	9.72		$	8.51		$	7.54		$	8.36

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Includes 143K square feet of leases that start in 2011 or later.

3/	Includes 91K square feet of leases that start in 2011 or later.

4/	Includes 38K square feet of leases that start in 2011 or later.

5/	Includes 62K square feet of leases that start in 2010 or later.

6/	Includes 346K square feet of leases that start in 2010 or later.

7/	Excludes a full allocation of internal leasing costs.


Highwoods Properties, Inc.		13		6/30/09

Leasing Statistics

Industrial Portfolio


	Three Months Ended
	6/30/09			3/31/09 1/			12/31/08			9/30/08 2/			6/30/08			Average
Net Effective Rents Related to Re-leased Space:
Number of lease transactions (signed leases)		14			14			14			14			14			14
Rentable square footage leased		624,617			292,938			297,789			358,284			367,684			388,262
Square footage of Renewal Deals		459,757			128,542			249,927			294,376			155,126			257,546
Renewed square footage (% of total)		73.6	%		43.9	%		83.9	%		82.2	%		42.2	%		66.3	%
New Leases square footage (% of total)		26.4	%		56.1	%		16.1	%		17.8	%		57.8	%		33.7	%

Weighted average per rentable square foot over the lease term:
Base rent	$	3.47		$	4.59		$	4.37		$	4.50		$	3.85		$	4.16
Tenant improvements		(0.29	)		(0.27	)		(0.26	)		(0.45	)		(0.18	)		(0.29	)
Leasing commissions 3/		(0.10	)		(0.07	)		(0.08	)		(0.09	)		(0.10	)		(0.09	)
Rent concessions		(0.09	)		(0.17	)		(0.01	)		(0.01	)		0.00			(0.06	)

Effective rent		2.99			4.08			4.02			3.95			3.57			3.72
Expense stop		(0.31	)		(0.35	)		(0.08	)		(0.05	)		(0.19	)		(0.20	)

Equivalent effective net rent	$	2.68		$	3.73		$	3.94		$	3.90		$	3.38		$	3.52

Weighted average term in years		3.1			4.1			3.7			3.0			1.8			3.1



Capital Expenditures Related to Re-leased Space:

Tenant Improvements:
Total dollars committed under signed leases	$	775,542		$	506,567		$	420,373		$	385,175		$	269,635		$	471,458
Rentable square feet		624,617			292,938			297,789			358,284			367,684			388,262

Per rentable square foot	$	1.24		$	1.73		$	1.41		$	1.08		$	0.73		$	1.21


Leasing Commissions:
Total dollars committed under signed leases 3/	$	218,170		$	106,339		$	71,111		$	142,626		$	62,837		$	120,217
Rentable square feet		624,617			292,938			297,789			358,284			367,684			388,262

Per rentable square foot	$	0.35		$	0.36		$	0.24		$	0.40		$	0.17		$	0.31


Total:
Total dollars committed under signed leases	$	993,712		$	612,906		$	491,484		$	527,801		$	332,471		$	591,675
Rentable square feet		624,617			292,938			297,789			358,284			367,684			388,262

Per rentable square foot	$	1.59		$	2.09		$	1.65		$	1.47		$	0.90		$	1.52

1/	Includes 56K square feet of leases that start in 2011 or later.

2/	Includes 256K square feet of leases that start in 2011 or later.

3/	Excludes a full allocation of internal leasing costs.


Highwoods Properties, Inc.		14		6/30/09

Leasing Statistics

Retail Portfolio


	Three Months Ended
	6/30/09 1/			3/31/09			12/31/08 2/			9/30/08			6/30/08 3/			Average
Net Effective Rents Related to Re-leased Space:
Number of lease transactions (signed leases)		9			5			13			3			6			7
Rentable square footage leased		60,665			11,279			57,245			7,719			15,839			30,549
Square footage of Renewal Deals		54,455			4,970			53,385			2,898			14,162			25,974
Renewed square footage (% of total)		89.8	%		44.1	%		93.3	%		37.5	%		89.4	%		85.0	%
New Leases square footage (% of total)		10.2	%		55.9	%		6.7	%		62.5	%		10.6	%		15.0	%

Weighted average per rentable square foot over the lease term:
Base rent	$	15.71		$	20.47		$	18.46		$	25.81		$	27.61		$	21.61
Tenant improvements		(0.40	)		(1.64	)		(0.65	)		0.00			(1.52	)		(0.84	)
Leasing commissions 4/		(0.06	)		0.00			(0.04	)		(0.15	)		(0.67	)		(0.18	)
Rent concessions		(0.04	)		0.00			(0.05	)		0.00			0.00			(0.02	)

Effective rent		15.21			18.83			17.72			25.66			25.42			20.57
Expense stop		0.00			(0.64	)		0.00			0.00			0.00			(0.13	)

Equivalent effective net rent	$	15.21		$	18.19		$	17.72		$	25.66		$	25.42		$	20.44

Weighted average term in years		2.8			6.1			7.6			8.6			7.7			6.6




Capital Expenditures Related to Re-leased Space:

Tenant Improvements:
Total dollars committed under signed leases	$	241,785		$	158,227		$	344,272		$	—		$	177,176		$	184,292
Rentable square feet		60,665			11,279			57,245			7,719			15,839			30,549

Per rentable square foot	$	3.99		$	14.03		$	6.01		$	—		$	11.19		$	6.03


Leasing Commissions:
Total dollars committed under signed leases 3/	$	34,975		$	1,000		$	20,072		$	1,165		$	5,794		$	12,601
Rentable square feet		60,665			11,279			57,245			7,719			15,839			30,549

Per rentable square foot	$	0.58		$	0.09		$	0.35		$	0.15		$	0.37		$	0.41


Total:
Total dollars committed under signed leases	$	276,760		$	159,227		$	364,344		$	1,165		$	182,970		$	196,893
Rentable square feet		60,665			11,279			57,245			7,719			15,839			30,549

Per rentable square foot	$	4.56		$	14.12		$	6.36		$	0.15		$	11.55		$	6.45

1/	Includes 3K square feet of leases that start in 2011 or later.

2/	Includes 5K square feet of leases that start in 2011 or later.

3/	Includes 3K square feet of leases that start in 2011 or later.

4/	Excludes a full allocation of internal leasing costs.


Highwoods Properties, Inc.		15		6/30/09

Leasing Statistics by Market

For the Three Months Ended As of 6/30/09


Office Portfolio 1/	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/ 3/
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/ 3/
Atlanta	311,789	2.9	$	16.49	$	2.60	$	1.54
Nashville	180,845	4.8		20.49		5.23		2.10
Raleigh	76,566	4.8		20.71		9.83		2.22
Richmond	65,488	2.9		17.00		4.15		1.96
Piedmont Triad	28,959	3.4		16.55		2.48		1.28
Tampa	24,896	3.2		26.57		8.71		1.48
Memphis	24,288	2.6		21.69		7.53		1.21
Other	7,444	1.4		24.19		0.00		0.98
Orlando	6,788	1.0		27.37		0.00		1.09
Greenville	6,712	6.0		15.68		4.46		3.76
Kansas City	3,715	2.4		22.46		5.80		3.11

	737,490	3.6	$	18.67	$	4.48	$	1.85


Industrial Portfolio	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/ 3/
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/ 3/
Piedmont Triad	423,180	3.1	$	2.90	$	0.98	$	0.30
Atlanta	201,437	3.0		4.39		1.79		0.45

	624,617	3.1	$	3.38	$	1.24	$	0.35


Retail Portfolio	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/ 3/
Market	Rentable Square Feet Leased	Average Term	GAAP Rental Rate		TI’s Per SF		Lease Commissions Per SF 2/ 3/
Kansas City	60,665	2.8	$	15.67	$	3.99	$	0.58

	60,665	2.8	$	15.67	$	3.99	$	0.58

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Lease commissions by market per square foot excludes capitalized internal leasing costs.

3/	The amount of capitalized internal leasing cost not allocated to individual deals or product types was $464K.


Highwoods Properties, Inc.		16		6/30/09

Rental Rate Comparisons by Market

For the Three Months Ended As of 6/30/09


Office Portfolio 1/	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Atlanta	311,789	$	16.49	$	16.33	1.0	%
Nashville	180,845		20.49		18.82	8.9	%
Raleigh	76,566		20.71		17.68	17.1	%
Richmond	65,488		17.00		16.86	0.8	%
Piedmont Triad	28,959		16.55		16.32	1.4	%
Tampa	24,896		26.57		20.59	29.0	%
Memphis	24,288		21.69		19.12	13.5	%
Other	7,444		24.19		21.42	12.9	%
Orlando	6,788		27.37		23.75	15.2	%
Greenville	6,712		15.68		22.73	-31.0	%
Kansas City	3,715		22.46		24.23	-7.3	%

GAAP Rent Growth	737,490	$	18.67	$	17.58	6.2	%



Cash Rent Growth	737,490	$	18.59	$	19.10	-2.7	%


Industrial Portfolio	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Market	Rentable Square Feet Leased	Current Rent		Previous Rent		Percentage Change Rent
Piedmont Triad	423,180	$	2.90	$	2.98	-2.7	%
Atlanta	201,437		4.39		4.63	-5.2	%

GAAP Rent Growth	624,617	$	3.38	$	3.51	-3.8	%



Cash Rent Growth	624,617	$	3.46	$	3.68	-5.9	%


Retail Portfolio	Rentable Square Feet Leased	Current Rent		Previous Rent 2/		Percentage Change Rent
Market	Rentable Square Feet Leased	Current Rent		Previous Rent 2/		Percentage Change Rent
Kansas City	60,665	$	15.67	$	13.70	14.5	%

GAAP Rent Growth	60,665	$	15.67	$	13.70	14.5	%



Cash Rent Growth	60,665	$	15.85	$	16.77	-5.5	%

Average Cash Rental Rates for All In Place Leases at: 1/ 3/


Type	6/30/09			6/30/08			6/30/07			6/30/06			6/30/05
Office	$	20.79		$	19.80		$	19.26		$	18.16		$	17.64
Industrial		5.21			5.30			5.19			5.10			5.02
Retail 2/		37.19			31.33			30.94			28.07			27.80

Weighted average rate	$	17.79		$	16.87		$	16.40		$	15.51		$	15.44



Annual % growth rate		5.5	%		2.9	%		5.7	%		0.5	%

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Excludes percentage rent.

3/	Average cash rental rates represent June, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12 and divided by the related leased square feet.


Highwoods Properties, Inc.		17		6/30/09

Lease Expirations

June 30, 2009

Dollars in thousands


Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Cash Revenue 1/		Average Rental Rate		Percent of Annualized Cash Revenue 1/
Office: 2/
2009 /3	820,178	4.6	%	$	17,353	$	21.16	4.6	%
2010	2,103,039	11.7	%		43,613		20.74	11.7	%
2011	2,572,355	14.2	%		51,961		20.20	13.9	%
2012	2,501,969	13.9	%		53,351		21.32	14.3	%
2013	2,379,639	13.3	%		51,428		21.61	13.8	%
2014	2,124,414	11.8	%		42,617		20.06	11.4	%
2015	1,340,869	7.5	%		28,233		21.06	7.6	%
2016	944,111	5.3	%		17,633		18.68	4.7	%
2017	1,041,932	5.8	%		21,059		20.21	5.6	%
2018	568,975	3.2	%		13,295		23.37	3.6	%
2019 and thereafter	1,556,180	8.7	%		32,803		21.08	8.8	%

	17,953,661	100.0	%	$	373,346	$	20.79	100.0	%


Industrial:
2009 /4	256,730	4.6	%	$	1,758	$	6.85	6.1	%
2010	846,391	15.2	%		3,893		4.60	13.4	%
2011	960,819	17.3	%		5,219		5.43	18.1	%
2012	593,129	10.7	%		3,083		5.20	10.6	%
2013	608,340	10.9	%		3,681		6.05	12.7	%
2014	771,147	13.9	%		3,701		4.80	12.8	%
2015	282,608	5.1	%		1,246		4.41	4.3	%
2016	264,597	4.8	%		1,070		4.04	3.7	%
2017	52,500	0.9	%		372		7.09	1.3	%
2018	71,884	1.3	%		245		3.41	0.8	%
2019 and thereafter	851,581	15.3	%		4,703		5.52	16.2	%

	5,559,726	100.0	%	$	28,971	$	5.21	100.0	%

1/	Annualized Cash Revenue is June, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

3/	Includes 55,000 square feet of leases that are on a month to month basis or 0.3% of total annualized revenue.

4/	Includes 76,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

Note: 2009 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.


Highwoods Properties, Inc.		18		6/30/09

Lease Expirations

June 30, 2009

(Continued)

Dollars in thousands


Year	Rentable Square Feet Expiring	Percent of Rentable Square Feet		Annualized Cash Revenue 1/		Average Rental Rate		Percent of Annualized Cash Revenue 1/
Retail:
2009 2/	26,803	3.3	%	$	1,314	$	49.02	4.3	%
2010	47,206	5.7	%		2,505		53.07	8.2	%
2011	72,150	8.8	%		2,215		30.70	7.2	%
2012	89,850	10.9	%		3,583		39.88	11.7	%
2013	51,177	6.2	%		2,207		43.12	7.2	%
2014	36,130	4.4	%		1,869		51.73	6.1	%
2015	70,970	8.6	%		2,831		39.89	9.2	%
2016	55,279	6.7	%		2,460		44.50	8.0	%
2017	110,570	13.4	%		2,374		21.47	7.7	%
2018	41,825	5.1	%		1,753		41.91	5.7	%
2019 and thereafter	221,997	26.9	%		7,534		33.94	24.7	%

	823,957	100.0	%	$	30,645	$	37.19	100.0	%


Total:
2009 3/ 4/	1,103,711	4.5	%	$	20,425	$	18.51	4.7	%
2010	2,996,636	12.3	%		50,011		16.69	11.6	%
2011	3,605,324	14.8	%		59,395		16.47	13.7	%
2012	3,184,948	13.1	%		60,017		18.84	13.9	%
2013	3,039,156	12.5	%		57,316		18.86	13.2	%
2014	2,931,691	12.0	%		48,187		16.44	11.1	%
2015	1,694,447	7.0	%		32,310		19.07	7.5	%
2016	1,263,987	5.2	%		21,163		16.74	4.9	%
2017	1,205,002	5.0	%		23,805		19.76	5.5	%
2018	682,684	2.8	%		15,293		22.40	3.5	%
2019 and thereafter	2,629,758	10.8	%		45,040		17.13	10.4	%

	24,337,344	100.0	%	$	432,962	$	17.79	100.0	%

1/	Annualized Cash Revenue is June, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/	Includes 11,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

3/	Includes 142,000 square feet of leases that are on a month to month basis or 0.4% of total annualized revenue.

4/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

Note: 2009 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.


Highwoods Properties, Inc.		19		6/30/09

Office Lease Expirations by Market by Quarter 1/

Dollars in thousands


		*Three Months Ended*
		9/30/09 2/			12/31/09			3/31/10			6/30/10			Total
Atlanta	RSF		36,509			14,915			24,429			10,580			86,433
	% of Total Office RSF		0.2	%		0.1	%		0.1	%		0.1	%		0.5	%
	Annualized Cash Revenue 3/	$	660		$	274		$	477		$	200		$	1,611
	% of Total Office Annl Cash Rev		0.2	%		0.1	%		0.1	%		0.1	%		0.4	%


Greenville	RSF		14,316			10,989			34,951			5,240			65,496
	% of Total Office RSF		0.1	%		0.1	%		0.2	%		0.0	%		0.4	%
	Annualized Cash Revenue 3/	$	337		$	205		$	630		$	98		$	1,270
	% of Total Office Annl Cash Rev		0.1	%		0.1	%		0.2	%		0.0	%		0.3	%


Kansas City	RSF		10,162			9,987			9,913			21,550			51,612
	% of Total Office RSF		0.1	%		0.1	%		0.1	%		0.1	%		0.3	%
	Annualized Cash Revenue 3/	$	232		$	244		$	225		$	518		$	1,219
	% of Total Office Annl Cash Rev		0.1	%		0.1	%		0.1	%		0.1	%		0.3	%


Memphis	RSF		61,987			67,653			62,071			65,239			256,950
	% of Total Office RSF		0.3	%		0.4	%		0.3	%		0.4	%		1.4	%
	Annualized Cash Revenue 3/	$	1,229		$	1,359		$	1,357		$	1,430		$	5,375
	% of Total Office Annl Cash Rev		0.3	%		0.4	%		0.4	%		0.4	%		1.4	%


Nashville	RSF		157,129			80,671			57,746			179,800			475,346
	% of Total Office RSF		0.9	%		0.4	%		0.3	%		1.0	%		2.6	%
	Annualized Cash Revenue 3/	$	3,798		$	1,633		$	1,282		$	3,739		$	10,452
	% of Total Office Annl Cash Rev		1.0	%		0.4	%		0.3	%		1.0	%		2.8	%


Orlando	RSF		1,232			4,733			2,779			6,788			15,532
	% of Total Office RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.1	%
	Annualized Cash Revenue 3/	$	26		$	129		$	76		$	186		$	417
	% of Total Office Annl Cash Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.1	%


Piedmont Triad	RSF		57,505			5,540			28,820			64,564			156,429
	% of Total Office RSF		0.3	%		0.0	%		0.2	%		0.4	%		0.9	%
	Annualized Cash Revenue 3/	$	874		$	89		$	466		$	883		$	2,312
	% of Total Office Annl Cash Rev		0.2	%		0.0	%		0.1	%		0.2	%		0.6	%


Raleigh	RSF		58,223			83,935			157,850			100,401			400,409
	% of Total Office RSF		0.3	%		0.5	%		0.9	%		0.6	%		2.2	%
	Annualized Cash Revenue 3/	$	1,239		$	1,868		$	2,670		$	1,803		$	7,580
	% of Total Office Annl Cash Rev		0.3	%		0.5	%		0.7	%		0.5	%		2.0	%


Richmond	RSF		35,176			26,273			58,153			120,540			240,142
	% of Total Office RSF		0.2	%		0.1	%		0.3	%		0.7	%		1.3	%
	Annualized Cash Revenue 3/	$	546		$	537		$	1,181		$	2,292		$	4,556
	% of Total Office Annl Cash Rev		0.1	%		0.1	%		0.3	%		0.6	%		1.2	%


Tampa	RSF		725			81,899			51,870			117,236			251,730
	% of Total Office RSF		0.0	%		0.5	%		0.3	%		0.7	%		1.4	%
	Annualized Cash Revenue 3/	$	62		$	2,001		$	1,292		$	3,109		$	6,464
	% of Total Office Annl Cash Rev		0.0	%		0.5	%		0.3	%		0.8	%		1.7	%


Other	RSF		619			0			5,707			0			6,326
	% of Total Office RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
	Annualized Cash Revenue 3/	$	11		$	—		$	123		$	—		$	134
	% of Total Office Annl Cash Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%


Total	RSF		433,583			386,595			494,289			691,938			2,006,405
	% of Total Office RSF		2.4	%		2.2	%		2.8	%		3.9	%		11.1	%
	Annualized Cash Revenue 3/	$	9,014		$	8,339		$	9,779		$	14,258		$	41,390
	% of Total Office Annl Cash Rev		2.4	%		2.2	%		2.6	%		3.8	%		11.1	%

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Includes 55,000 square feet of leases that are on a month to month basis or 0.3% of total annualized revenue.

3/	Annualized Cash Revenue is June, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.


Highwoods Properties, Inc.		20		6/30/09

Industrial Lease Expirations by Market by Quarter

Dollars in thousands


		Three Months Ended
		9/30/09 1/			12/31/09			3/31/10			6/30/10			Total
Atlanta	RSF		120,804			40,617			102,026			12,700			276,147
	% of Total Industrial RSF		2.2	%		0.7	%		1.8	%		0.2	%		5.0	%
	Annualized Cash Revenue 2/	$	992		$	259		$	506		$	39		$	1,796
	% of Total Industrial Annl Cash Rev		3.5	%		0.9	%		1.7	%		0.1	%		6.2	%


Piedmont Triad	RSF		62,424			32,885			404,580			72,586			572,475
	% of Total Industrial RSF		1.1	%		0.6	%		7.3	%		1.3	%		10.3	%
	Annualized Cash Revenue 2/	$	181		$	328		$	1,278		$	479		$	2,266
	% of Total Industrial Annl Cash Rev		0.6	%		1.1	%		4.4	%		1.7	%		7.8	%


Total	RSF		183,228			73,502			506,606			85,286			848,622
	% of Total Industrial RSF		3.3	%		1.3	%		9.1	%		1.5	%		15.3	%
	Annualized Cash Revenue 2/	$	1,173		$	587		$	1,784		$	518		$	4,062
	% of Total Industrial Annl Cash Rev		4.1	%		2.0	%		6.2	%		1.8	%		14.1	%

1/	Includes 76,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

2/	Annualized Cash Revenue is June, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.


Highwoods Properties, Inc.		21		6/30/09

Office Lease Expirations by Market by Year 1/

Dollars in thousands


		2009 2/			2010			2011			2012			Thereafter
Atlanta	RSF		51,424			200,667			291,136			340,075			1,434,836
	% of Total Office RSF		0.3	%		1.1	%		1.6	%		1.9	%		8.0	%
	Annualized Cash Revenue 3/	$	934		$	3,813		$	6,408		$	7,819		$	31,896
	% of Total Office Annl Cash Rev		0.3	%		1.0	%		1.7	%		2.1	%		8.5	%


Greenville	RSF		25,305			57,236			104,244			242,769			383,058
	% of Total Office RSF		0.1	%		0.3	%		0.6	%		1.4	%		2.1	%
	Annualized Cash Revenue 3/	$	542		$	997		$	1,922		$	4,155		$	7,031
	% of Total Office Annl Cash Rev		0.1	%		0.3	%		0.5	%		1.1	%		1.9	%


Kansas City	RSF		20,149			106,902			80,256			73,215			281,830
	% of Total Office RSF		0.1	%		0.6	%		0.4	%		0.4	%		1.6	%
	Annualized Cash Revenue 3/	$	476		$	3,077		$	2,085		$	1,844		$	7,314
	% of Total Office Annl Cash Rev		0.1	%		0.8	%		0.6	%		0.5	%		2.0	%


Memphis	RSF		129,640			208,590			155,162			170,179			707,607
	% of Total Office RSF		0.7	%		1.2	%		0.9	%		0.9	%		3.9	%
	Annualized Cash Revenue 3/	$	2,588		$	4,533		$	3,344		$	3,509		$	13,729
	% of Total Office Annl Cash Rev		0.7	%		1.2	%		0.9	%		0.9	%		3.7	%


Nashville	RSF		237,800			433,295			331,770			292,208			1,564,976
	% of Total Office RSF		1.3	%		2.4	%		1.8	%		1.6	%		8.7	%
	Annualized Cash Revenue 3/	$	5,431		$	9,080		$	7,276		$	6,337		$	33,948
	% of Total Office Annl Cash Rev		1.5	%		2.4	%		1.9	%		1.7	%		9.1	%


Orlando	RSF		5,965			83,868			111,007			5,830			105,846
	% of Total Office RSF		0.0	%		0.5	%		0.6	%		0.0	%		0.6	%
	Annualized Cash Revenue 3/	$	155		$	2,056		$	2,490		$	155		$	2,701
	% of Total Office Annl Cash Rev		0.0	%		0.6	%		0.7	%		0.0	%		0.7	%


Piedmont Triad	RSF		63,045			183,865			413,082			409,976			597,732
	% of Total Office RSF		0.4	%		1.0	%		2.3	%		2.3	%		3.3	%
	Annualized Cash Revenue 3/	$	963		$	2,985		$	6,133		$	7,968		$	7,973
	% of Total Office Annl Cash Rev		0.3	%		0.8	%		1.6	%		2.1	%		2.1	%


Raleigh	RSF		142,158			332,607			562,306			432,766			2,025,150
	% of Total Office RSF		0.8	%		1.9	%		3.1	%		2.4	%		11.3	%
	Annualized Cash Revenue 3/	$	3,106		$	6,024		$	11,508		$	8,412		$	38,302
	% of Total Office Annl Cash Rev		0.8	%		1.6	%		3.1	%		2.3	%		10.3	%


Richmond	RSF		61,449			281,241			400,666			270,464			1,037,386
	% of Total Office RSF		0.3	%		1.6	%		2.2	%		1.5	%		5.8	%
	Annualized Cash Revenue 3/	$	1,083		$	5,545		$	7,786		$	5,273		$	18,884
	% of Total Office Annl Cash Rev		0.3	%		1.5	%		2.1	%		1.4	%		5.1	%


Tampa	RSF		82,624			209,061			118,120			264,487			1,738,145
	% of Total Office RSF		0.5	%		1.2	%		0.7	%		1.5	%		9.7	%
	Annualized Cash Revenue 3/	$	2,063		$	5,380		$	2,858		$	7,844		$	43,011
	% of Total Office Annl Cash Rev		0.6	%		1.4	%		0.8	%		2.1	%		11.5	%


Other	RSF		619			5,707			4,606			0			79,554
	% of Total Office RSF		0.0	%		0.0	%		0.0	%		0.0	%		0.4	%
	Annualized Cash Revenue 3/	$	11		$	123		$	152		$	34		$	2,280
	% of Total Office Annl Cash Rev		0.0	%		0.0	%		0.0	%		0.0	%		0.6	%


Total	RSF		820,178			2,103,039			2,572,355			2,501,969			9,956,120
	% of Total Office RSF		4.6	%		11.7	%		14.3	%		13.9	%		55.5	%
	Annualized Cash Revenue 3/	$	17,352		$	43,613		$	51,962		$	53,350		$	207,069
	% of Total Office Annl Cash Rev		4.6	%		11.7	%		13.9	%		14.3	%		55.5	%

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Includes 55,000 square feet of leases that are on a month to month basis or 0.3% of total annualized revenue.

3/	Annualized Cash Revenue is June, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.


Highwoods Properties, Inc.		22		6/30/09

Industrial Lease Expirations by Market by Year

Dollars in thousands


		2009 1/			2010			2011			2012			Thereafter
Atlanta	RSF		161,421			247,728			575,416			288,570			1,672,183
	% of Total Industrial RSF		2.9	%		4.5	%		10.3	%		5.2	%		30.1	%
	Annualized Cash Revenue 2/	$	1,250		$	1,421		$	3,217		$	1,579		$	9,808
	% of Total Industrial Annl Cash Rev		4.3	%		4.9	%		11.1	%		5.5	%		33.9	%


Piedmont Triad	RSF		95,309			598,663			385,403			304,559			1,230,474
	% of Total Industrial RSF		1.7	%		10.8	%		6.9	%		5.5	%		22.1	%
	Annualized Cash Revenue 2/	$	509		$	2,472		$	2,002		$	1,505		$	5,210
	% of Total Industrial Annl Cash Rev		1.8	%		8.5	%		6.9	%		5.2	%		18.0	%


Total	RSF		256,730			846,391			960,819			593,129			2,902,657
	% of Total Industrial RSF		4.6	%		15.2	%		17.3	%		10.7	%		52.2	%
	Annualized Cash Revenue 2/	$	1,759		$	3,893		$	5,219		$	3,084		$	15,018
	% of Total Industrial Annl Cash Rev		6.1	%		13.4	%		18.0	%		10.6	%		51.8	%

1/	Includes 76,000 square feet of leases that are on a month to month basis or 0.1% of total annualized revenue.

2/	Annualized Cash Revenue is June, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.


Highwoods Properties, Inc.		23		6/30/09

Customer Diversification 1/

June 30, 2009

Dollars in thousands

Top 20 Customers


Customer	RSF	Annualized Cash Revenue 2/		Percent of Annualized Cash Revenue 2/		Average Remaining Lease Term in Years
Federal Government	1,716,213	$	37,685	8.70	%	8.0
AT&T 3/	768,579		14,335	3.31	%	4.7
Price Waterhouse Coopers	400,178		11,522	2.66	%	3.2
State of Georgia 4/	375,105		8,032	1.86	%	1.6
Healthways	290,689		7,479	1.73	%	13.0
T-Mobile USA	207,517		5,974	1.38	%	4.4
Metropolitan Life Insurance	296,595		5,928	1.37	%	8.6
Lockton Companies	160,561		4,423	1.02	%	5.7
BB&T	258,363		4,287	0.99	%	3.9
RBC Bank	164,271		4,030	0.93	%	17.5
Syniverse Technologies	198,750		4,003	0.92	%	7.3
Fluor Enterprises	209,474		3,747	0.87	%	2.6
SCI Services 5/	162,784		3,658	0.84	%	8.1
HCA Corporation	160,945		3,545	0.82	%	4.3
Wells Fargo/Wachovia 6/	129,389		3,112	0.72	%	1.7
Jacobs Engineering Group	181,794		3,066	0.71	%	6.3
Vanderbilt University	144,161		3,003	0.69	%	6.3
Lifepoint Corporate Services	139,625		2,890	0.67	%	2.1
Icon Clinical Research	110,909		2,677	0.62	%	4.3
Talecris Biotherapeutics	122,870		2,407	0.56	%	3.0

	6,198,772	$	135,803	31.37	%	6.3

By Industry


Category	Percent of Annualized Cash Revenue 2/
Professional, Scientific, and Technical Services	20.5	%
Government/Public Administration	9.8	%
Finance/Banking	9.7	%
Insurance	8.8	%
Health Care and Social Assistance	7.2	%
Wholesale Trade	6.9	%
Manufacturing	6.6	%
Telecommunication	6.4	%
Retail Trade	5.7	%
Real Estate Rental and Leasing	3.7	%
Information	3.1	%
Administrative and Support Services	2.8	%
Accommodation and Food Services	2.8	%
Transportation and Warehousing	2.2	%
Other Services (except Public Administration)	2.1	%
Educational Services	1.7	%

	100.0	%

1/	Excludes properties recorded on our Balance Sheet that relate to 50% or less owned joint ventures properties that are consolidated under GAAP.

2/	Annualized Cash Revenue is June, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

3/	Annualized Cash Revenue reflects addback of rent concessions related to renewals starting this quarter.

4/	Includes 123,000 square feet of annually renewable leases.

5/	SCI Services (Saxon Capital, Inc.) is a wholly owned subsidiary of Morgan Stanley.

6/	Wells Fargo acquired Wachovia effective December 31, 2008.


Highwoods Properties, Inc.		24		6/30/09

Same Property Performance

Dollars and Square Feet in thousands


	Three months ended June 30,						Percentage Change
	2009			2008			Percentage Change
Rental revenues 1/	$	100,232		$	102,400		-2.1	%
Operating expenses		(34,497	)		(35,441	)	2.7	%

		65,735			66,959		-1.8	%
Straight line rent		(114	)		734		-115.5	%

		65,621			67,693		-3.1	%
Lease termination fees		171			22		677.3	%

Net operating income	$	65,792		$	67,715		-2.8	%

Average occupancy		88.0	%		90.9	%	-3.2	%

Rentable square feet		25,454			25,454


	Six months ended June 30,						Percentage Change
	2009			2008			Percentage Change
Rental revenues 1/	$	200,044		$	202,863		-1.4	%
Operating expenses		(70,096	)		(69,347	)	-1.1	%

		129,948			133,516		-2.7	%
Straight line rent		526			2,775		-81.0	%

		130,474			136,291		-4.3	%
Lease termination fees		1,206			1,924		-37.3	%

Net operating income	$	131,680		$	138,215		-4.7	%

Average occupancy		88.3	%		90.8	%	-2.8	%

Rentable square feet		25,454			25,454



	Second Quarter: 2009 vs 2008				June YTD: 2009 vs 2008
Market	NOI 2/ Percentage Change		Occupancy Percentage Change		NOI 2/ Percentage Change		Occupancy Percentage Change
Atlanta	2.9	%	-1.2	%	-2.1	%	-0.7	%
Greenville	8.8	%	2.0	%	10.1	%	5.7	%
Kansas City	-10.3	%	-1.7	%	-11.6	%	-0.5	%
Memphis	-3.4	%	-0.1	%	-5.3	%	-1.1	%
Nashville	3.2	%	-0.7	%	1.1	%	-1.1	%
Orlando	6.7	%	2.1	%	3.0	%	2.4	%
Piedmont Triad	-6.0	%	-7.2	%	-8.3	%	-7.1	%
Raleigh	-5.9	%	-7.5	%	-5.9	%	-6.2	%
Richmond	-4.5	%	-0.6	%	-3.5	%	-1.4	%
Tampa	-8.3	%	-4.1	%	-5.8	%	-4.4	%

	-3.1	%	-3.2	%	-4.3	%	-2.8	%

1/	Excludes straight line rents and lease termination fees.

2/	Includes straight line rents and excludes lease termination fees.


Highwoods Properties, Inc.		25		6/30/09

Disposition Activity

Dollars in thousands

Name

Market

Type 1/

Date
Sold

Square
Footage

Occupancy

Gross Sales
Price

First quarter 2009:

Somerset

Kansas City

01/16/09

4,000

46.5

200

First quarter totals

4,000

46.5

200

Second quarter 2009:

KC Community Centers

Kansas City

05/28/09

416,000

94.5

62,142

Second quarter totals

416,000

94.5

62,142

2009 totals

420,000

94.0

62,342

1/	The letters “I” and “R” represent Industrial and Retail, respectively.


Highwoods Properties, Inc.		26		6/30/09

Development Activity

Dollars in thousands


Property	Market	Type	Rentable Square Feet	Anticipated Total Investment		Investment @ 06/30/09			Pre Leased %			Estimated Completion Date			Estimated Stabilization Date
In - Process
Office:
Jackson FBI	Jackson, MS	O	110,000	$	34,900	$	33,560			100	%		3Q 09		3Q 09
Triad Centre III	Memphis	O	148,000		29,187		24,208			17	%		3Q 09		2Q 11

In - Process Total or Weighted Average			258,000	$	64,087	$	57,768			52	%

						$	Weighted	%		62	%


Completed Not Stabilized 1/
Office:
Cool Springs IV	Nashville	O	153,000	$	27,597	$	21,763			8	%		3Q 08		1Q 10
Centregreen V	Raleigh	O	98,000		15,662		14,133			75	%		1Q 08		3Q 09
Glenlake VI	Raleigh	O	122,000		24,448		23,016			57	%		1Q 08		3Q 09

Total or Weighted Average			373,000	$	67,707	$	58,912			42	%

						$	Weighted	%		41	%


Industrial:
River Point IV	Atlanta	I	200,000	$	12,414	$	11,390			50	%		1Q 09		2Q 10

			200,000	$	12,414	$	11,390			50	%

						$	Weighted	%		50	%




Completed Not Stabilized Total or Weighted Average			573,000	$	80,121	$	70,302			45	%

						$	Weighted	%		43	%




Grand Total or Weighted Average			831,000	$	144,208	$	128,070			47	%

						$	Weighted	%		51	%




Placed in Service in 2Q

Property	Market	Type	Rentable Square Feet	Anticipated Total Investment		Investment @ 06/30/09			Pre Leased %			Occ %			In-Service Date
FAA	Atlanta	O	100,000	$	18,071	$	17,640			100	%		100	%	04/01/09
RBC Plaza 2/	Raleigh	O	292,000		76,056		73,006			96	%		96	%	06/30/09

Placed in Service Total or Weighted Average			392,000	$	94,127	$	90,646			97	%		97	%

						$	Weighted	%		97	%		97	%




For Sale Residential Condominiums
				Units For Sale		Units Sold			PTD Gross Sale Proceeds			PTD Gain 4/
RBC Plaza Condominiums 3/	Raleigh				60		79		$	32,399		$	5,146

1/	“Completed Not Stabilized” properties are recorded in the Consolidated Balance Sheet in the Land and Building accounts, not Development-in-Process.

2/	Includes ancillary retail space on the ground level of approximately 11,000 square feet.

3/	In January 2007 the Company executed a Joint Venture agreement for this development. The Company has a majority interest and consolidates this Joint Venture.

4/	Gain includes any forfeited deposits and is net of partner’s interest; in 2Q09 net gain was $295


Highwoods Properties, Inc.		27		6/30/09

Development Land

June 30, 2009

Dollars in thousands


Market	Usable Acres	Total Estimated Market Value
Atlanta	233	$	33,329
Raleigh	190		43,577
Greensboro	47		10,155
Richmond	33		8,296
Tampa	20		15,423
Nashville	16		8,106
Orlando	15		16,409
Memphis	15		3,496
Baltimore	7		1,800
Winston-Salem	3		1,500
Kansas City	1		2,100

Total 1/ 2/ 3/	580	$	144,191

1/	Includes 75 acres currently classified as Development in Process on our consolidated balance sheet.

2/	Developable square footage on core land holdings, which constitute 490 of the total 580 acres, is approximately 5.2 million of office space and 2.5 million of industrial space.

3/	Includes 4.4 acres ($1.4 million based on expected gross proceeds) included in property held for sale at June 30, 2009.


Highwoods Properties, Inc.		28		6/30/09

Acquisition Activity

Dollars in thousands


Name	Market	Type	Date Acquired	Square Footage	Total Cost

First quarter 2009:
None

Second quarter 2009:
None


Highwoods Properties, Inc.		29		6/30/09

Unconsolidated Joint Ventures Assets, Debt and Liabilities

June 30, 2009

Dollars in thousands


				Venture’s Books
Joint Venture	Type 1/	Own %		Total Assets		Debt		Total Liabilities

Board of Trade Investment Co.	O	49.00	%	$	7,311	$	—	$	277
Dallas County Partners I, LP	O/ I	50.00	%		29,548		47,832		51,082
Dallas County Partners II, LP	O	50.00	%		13,480		13,773		15,283
Dallas County Partners III, LP	O	50.00	%		124		—		39
Fountain Three	O/ I / R	50.00	%		25,156		31,979		34,546
RRHWoods, LLC	O/ M	50.00	%		84,640		80,408		84,756
Kessinger/Hunter, LLC	-	26.50	%		7,284		—		897
4600 Madison Associates, LP	O	12.50	%		17,263		12,133		12,693
Highwoods DLF 98/29, LP	O	22.81	%		134,314		68,729		73,769
Highwoods DLF 97/26 DLF 99/32, LP	O	42.93	%		97,426		54,334		58,019
Concourse Center Associates, LLC	O	50.00	%		13,456		8,556		8,796
Plaza Colonnade, LLC	O/R	50.00	%		71,259		64,834		66,406
Highwoods KC Glenridge Office, LP	O	40.00	%		23,956		16,242		17,068
Highwoods KC Glenridge Land, LP	O	40.00	%		782		—		118
Highwoods KC Orlando, LLC	O	40.00	%		201,431		138,120		146,526
Highwoods DLF Forum, LLC	O	25.00	%		115,329		67,500		69,959

Total				$	842,759	$	604,440	$	640,234


				Highwoods’ Share of Joint Venture
Joint Venture	Type 1/	Own %		Total Assets		Debt		Total Liabilities

Board of Trade Investment Co.	O	49.00	%	$	3,582	$	—	$	136
Dallas County Partners I, LP	O/ I	50.00	%		14,774		23,916		25,541
Dallas County Partners II, LP	O	50.00	%		6,740		6,887		7,642
Dallas County Partners III, LP	O	50.00	%		62		—		20
Fountain Three	O/ I /R	50.00	%		12,578		15,990		17,273
RRHWoods, LLC	O/ M	50.00	%		42,320		40,204		42,378
Kessinger/Hunter, LLC	-	26.50	%		1,930		—		238
4600 Madison Associates, LP	O	12.50	%		2,158		1,517		1,587
Highwoods DLF 98/29, LP	O	22.81	%		30,637		15,677		16,827
Highwoods DLF 97/26 DLF 99/32, LP	O	42.93	%		41,825		23,326		24,908
Concourse Center Associates, LLC	O	50.00	%		6,728		4,278		4,398
Plaza Colonnade, LLC	O/R	50.00	%		35,630		32,417		33,203
Highwoods KC Glenridge Office, LP	O	40.00	%		9,582		6,497		6,827
Highwoods KC Glenridge Land, LP	O	40.00	%		313		—		47
Highwoods KC Orlando, LLC	O	40.00	%		80,572		55,248		58,610
Highwoods DLF Forum, LLC	O	25.00	%		28,828		16,872		17,487

Total 2/				$	318,259	$	242,829	$	257,122

1/	The letters “O”, “I”, “R”, and “M” represent Office, Industrial, Retail, and Multi-Family, respectively.

Highwoods’ share of equity from these tables will not equal Investments in Unconsolidated Affiliates on the Consolidated Balance Sheet due to various purchase accounting and related adjustments as well as negative investment balances reclassed to Liabilities, which are not reflected in the Joint Ventures’ stand-alone financial statements.


Highwoods Properties, Inc.		30		6/30/09

Unconsolidated Joint Ventures Income

For the Three Months Ended June 30, 2009

Dollars in thousands


			Venture’s Books
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Gain on Sale		Net Income/ (Loss)

Board of Trade Investment Co.	49.00	%	$	561	$	390	$	—	$	134	$	—	$	37
Dallas County Partners I, LP	50.00	%		2,229		1,493		758		464		—		(486	)
Dallas County Partners II, LP	50.00	%		1,545		678		360		216		—		291
Dallas County Partners III, LP	50.00	%		59		60		—		—		—		(1	)
Fountain Three	50.00	%		1,895		877		521		339		—		158
RRHWoods, LLC	50.00	%		4,193		2,228		802		1,047		—		116
Kessinger/Hunter, LLC	26.50	%		2,514		2,438		—		147		—		(71	)
4600 Madison Associates, LP	12.50	%		1,376		597		216		456		—		107
Highwoods DLF 98/29, LP	22.81	%		4,061		1,640		1,152		1,155		3,426		3,540
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		3,444		1,459		1,053		1,039		—		(107	)
Concourse Center Associates, LLC	50.00	%		479		125		156		77		—		121
Plaza Colonnade, LLC	50.00	%		2,701		963		944		573		—		221
Highwoods KC Glenridge Office, LP	40.00	%		675		382		206		180		—		(93	)
Highwoods KC Glenridge Land, LP	40.00	%		—		6		—		—		—		(6	)
Highwoods KC Orlando, LLC	40.00	%		8,140		3,567		1,820		1,760		—		993
Highwoods DLF Forum, LLC	25.00	%		3,466		1,162		878		1,377		—		49

Total			$	37,338	$	18,065	$	8,866	$	8,964	$	3,426	$	4,869


			Highwoods’ Share of Joint Venture
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Gain on Sale		Net Income/ (Loss)

Board of Trade Investment Co.	49.00	%	$	275	$	191	$	—	$	66	$	—	$	18
Dallas County Partners I, LP	50.00	%		1,114		747		379		232		—		(244	)
Dallas County Partners II, LP	50.00	%		773		339		180		108		—		146
Dallas County Partners III, LP	50.00	%		30		30		—		—		—		—
Fountain Three	50.00	%		948		438		261		169		—		80
RRHWoods, LLC	50.00	%		2,096		1,114		401		524		—		57
Kessinger/Hunter, LLC	26.50	%		666		646		—		39		—		(19	)
4600 Madison Associates, LP	12.50	%		172		74		27		57		—		14
Highwoods DLF 98/29, LP	22.81	%		926		374		263		263		781		807
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		1,478		627		452		446		—		(47	)
Concourse Center Associates, LLC	50.00	%		240		63		78		39		—		60
Plaza Colonnade, LLC	50.00	%		1,350		482		472		287		—		109
Highwoods KC Glenridge Office, LP	40.00	%		270		152		82		72		—		(36	)
Highwoods KC Glenridge Land, LP	40.00	%		—		3		—		—		—		(3	)
Highwoods KC Orlando, LLC	40.00	%		3,256		1,427		728		704		—		397
Highwoods DLF Forum, LLC	25.00	%		866		290		219		344		—		13

Total 1/ 2/			$	14,460	$	6,997	$	3,542	$	3,350	$	781	$	1,352

Highwoods’ share of Depreciation and Amortization from these tables will not equal Depreciation and Amortization of Real Estate Assets for Unconsolidated Affiliates on the Statement of Funds from Operations due to various purchase accounting and related adjustments, which are not reflected in the Joint Ventures’ stand-alone financial statements.

2/	Highwoods’ share of Net Income from these tables will not equal Equity in Earnings of Unconsolidated Affiliates on the Consolidated Income Statement due to various purchase accounting and related adjustments, which are not reflected in the Joint Ventures’ stand-alone financial statements.


Highwoods Properties, Inc.		31		6/30/09

Unconsolidated Joint Ventures Income

For the Six Months Ended June 30, 2009

Dollars in thousands


			Venture’s Books
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Gain on Sale		Net Income/ (Loss)

Board of Trade Investment Co.	49.00	%	$	1,132	$	747	$	—	$	267	$	—	$	118
Dallas County Partners I, LP	50.00	%		4,662		3,137		1,518		904		—		(897	)
Dallas County Partners II, LP	50.00	%		3,133		1,435		732		432		—		534
Dallas County Partners III, LP	50.00	%		115		117		—		—		—		(2	)
Fountain Three	50.00	%		3,843		1,920		1,043		674		—		206
RRHWoods, LLC	50.00	%		8,588		4,831		1,606		2,099		—		52
Kessinger/Hunter, LLC	26.50	%		5,027		5,122		—		295		—		(390	)
4600 Madison Associates, LP	12.50	%		2,752		1,137		429		874		—		312
Highwoods DLF 98/29, LP	22.81	%		8,755		3,199		2,381		2,360		3,426		4,241
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		7,145		2,906		2,110		2,047		—		82
Concourse Center Associates, LLC	50.00	%		969		265		313		153		—		238
Plaza Colonnade, LLC	50.00	%		5,414		1,895		1,894		1,131		—		494
Highwoods KC Glenridge Office, LP	40.00	%		1,383		776		410		354		—		(157	)
Highwoods KC Glenridge Land, LP	40.00	%		—		7		—		—		—		(7	)
Highwoods KC Orlando, LLC	40.00	%		16,328		6,863		3,649		3,626		—		2,190
Highwoods DLF Forum, LLC	25.00	%		6,952		2,348		1,756		2,731		—		117

Total			$	76,198	$	36,705	$	17,841	$	17,947	$	3,426	$	7,131


			Highwoods’ Share of Joint Venture
Joint Venture	Own %		Revenue		Operating Exp		Interest		Depr/Amort		Gain on Sale		Net Income/ (Loss)

Board of Trade Investment Co.	49.00	%	$	555	$	366	$	—	$	131	$	—	$	58
Dallas County Partners I, LP	50.00	%		2,331		1,569		759		452		—		(449	)
Dallas County Partners II, LP	50.00	%		1,567		718		366		216		—		267
Dallas County Partners III, LP	50.00	%		58		59		—		—		—		(1	)
Fountain Three	50.00	%		1,922		960		522		337		—		103
RRHWoods, LLC	50.00	%		4,294		2,416		803		1,050		—		25
Kessinger/Hunter, LLC	26.50	%		1,332		1,357		—		78		—		(103	)
4600 Madison Associates, LP	12.50	%		344		142		54		109		—		39
Highwoods DLF 98/29, LP	22.81	%		1,997		730		543		538		781		967
Highwoods DLF 97/26 DLF 99/32, LP	42.93	%		3,067		1,248		906		879		—		34
Concourse Center Associates, LLC	50.00	%		485		133		157		77		—		118
Plaza Colonnade, LLC	50.00	%		2,707		948		947		566		—		246
Highwoods KC Glenridge Office, LP	40.00	%		553		310		164		142		—		(63	)
Highwoods KC Glenridge Land, LP	40.00	%		—		3		—		—		—		(3	)
Highwoods KC Orlando, LLC	40.00	%		6,531		2,745		1,460		1,450		—		876
Highwoods DLF Forum, LLC	25.00	%		1,738		587		439		683		—		29

Total 1/ 2/			$	29,481	$	14,291	$	7,120	$	6,708	$	781	$	2,143

2/	Highwoods’ share of Net Income from these tables will not equal Equity in Earnings of Unconsolidated Affiliates on the Consolidated Income Statement due to various purchase accounting and related adjustments, which are not reflected in the Joint Ventures’ stand-alone financial statements.


Highwoods Properties, Inc.		32		6/30/09

Joint Ventures Long-Term Debt Detail 1/

Dollars in thousands


Joint Venture	Own %		Lender	Interest Rate		Maturity Date	Loan Balance 6/30/09
Dallas County Partners I, LP	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18	$	40,822
Dallas County Partners I, LP	50.0	%	Regions	6.30	%	Jun-14		3,370
Dallas County Partners I, LP	50.0	%	Thrivent	8.45	%	Aug-10		1,524
Dallas County Partners I, LP	50.0	%	Bankers Trust	8.00	%	Jul-11		1,122
Dallas County Partners I, LP	50.0	%	Sun Life	5.92	%	Feb-16		994

				6.31	%			47,832

Dallas County Partners II, LP	50.0	%	Principal Life Insurance Company	10.19	%	Jun-13		13,773

Fountain Three	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18		16,295
Fountain Three	50.0	%	Thrivent	7.00	%	Sep-12		5,061
Fountain Three	50.0	%	Thrivent	6.01	%	Sep-17		3,606
Fountain Three	50.0	%	Thrivent	6.01	%	Sep-17		3,606
Fountain Three	50.0	%	Lehman Brothers	8.02	%	Aug-09		3,411

				6.47	%			31,979

RRHWoods, LLC	50.0	%	Bank of America	6.80	%	Sep-12		25,873
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds /2	0.62	%	Nov-15		23,000
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	5.85	%	Mar-16		8,264
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds /2	0.55	%	Sep-15		6,000
RRHWoods, LLC	50.0	%	Industrial Revenue Bonds /2	0.54	%	Nov-15		5,500
RRHWoods, LLC	50.0	%	Massachusetts Mutual Life Ins. Co.	6.19	%	Aug-18		4,508
RRHWoods, LLC	50.0	%	UNUM Life Insurance Company	5.67	%	Mar-17		3,893
RRHWoods, LLC	50.0	%	Regions	6.30	%	Jun-14		3,370

				3.93	%			80,408

Plaza Colonnade, LLC	50.0	%	Met Life	5.72	%	Jan-17		47,629
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.90	%	Mar-24		12,345
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	6.00	%	Mar-16		4,350
Plaza Colonnade, LLC	50.0	%	Tax Incremental Financing	5.38	%	Mar-10		510

				5.77	%			64,834

Highwoods KC Orlando, LLC	40.0	%	Met Life	5.21	%	Jul-14		138,120
Highwoods DLF Forum, LLC	25.0	%	Jackson National Life Insurance Company	5.13	%	Nov-13		67,500
Highwoods DLF 97/26 DLF 99/32, LP	42.9	%	Massachusetts Mutual Life Ins. Co.	7.66	%	May-12		54,334
Highwoods DLF 98/29, LP	22.8	%	USG Annuity & Life Company	6.78	%	Apr-11		41,079
Highwoods DLF 98/29, LP	22.8	%	Goldman Sachs	6.11	%	Jul-17		27,650
Highwoods KC Glenridge Office	40.0	%	Wachovia	4.84	%	May-14		16,242
4600 Madison Associates, LLC	12.5	%	State Farm	6.85	%	Apr-18		12,133
Concourse Center Associates, LLC	50.0	%	Lincoln National Life Insurance Co.	6.95	%	Jul-10		8,556

				5.88	%			365,614


				5.77	%		$	604,440



Highwoods’ share of the above							$	242,829

1/	Excludes loans related to two “consolidated” joint ventures.

2/	Floating rate loan based on market rates.


Highwoods Properties, Inc.		33		6/30/09

Joint Ventures Portfolio Summary

As of June 30, 2009

Summary by Location:


				Percentage of Annualized Cash Revenue Highwoods’ Share Only 1/
Market	Rentable Square Feet	Occupancy		Office		Industrial		Retail		Multi-Family		Total
Des Moines 2/	2,505,000	86.8	%	26.9	%	4.1	%	0.7	%	3.3	%	35.0	%
Orlando	1,852,000	87.4	%	28.0	%	—		—		—		28.0	%
Atlanta	835,000	77.7	%	11.3	%	—		—		—		11.3	%
Kansas City	719,000	89.2	%	8.3	%	—		—		—		8.3	%
Raleigh	814,000	94.4	%	7.6	%	—		—		—		7.6	%
Richmond	413,000	100.0	%	5.1	%	—		—		—		5.1	%
Tampa	205,000	94.2	%	2.1	%	—		—		—		2.1	%
Piedmont Triad	364,000	43.0	%	1.9	%	—		—		—		1.9	%
Charlotte	148,000	100.0	%	0.7	%	—		—		—		0.7	%

Total 3/	7,855,000	86.1	%	91.9	%	4.1	%	0.7	%	3.3	%	100.0	%

1/	Annualized Cash Revenue is June, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.

2/	Excludes 418 apartment units and related occupancy percentage of 97.6%.

3/	Includes 618,000 square feet of properties in joint ventures that are consolidated.


Highwoods Properties, Inc.		34		6/30/09

Joint Ventures Lease Expirations

June 30, 2009

Dollars in thousands


Year	Rentable Square Feet Expiring 1/	Percent of Rentable Square Feet 1/		Annualized Cash Revenue 2/		Average Rental Rate		Percent of Annualized Cash Revenue 2/
Total
2009	218,824	3.3	%	$	4,865	$	22.23	3.5	%
2010	897,198	13.3	%		17,612		19.63	12.5	%
2011	1,097,999	16.3	%		22,959		20.91	16.3	%
2012	551,223	8.2	%		12,656		22.96	9.0	%
2013	1,227,170	18.2	%		26,403		21.52	18.7	%
2014	904,791	13.5	%		20,208		22.33	14.4	%
2015	726,555	10.8	%		14,052		19.34	10.0	%
2016	99,544	1.5	%		2,018		20.27	1.4	%
2017	572,153	8.5	%		13,182		23.04	9.4	%
2018	78,634	1.2	%		1,789		22.75	1.3	%
2019 and thereafter	349,575	5.2	%		4,921		14.08	3.5	%

	6,723,666	100.0	%	$	140,665	$	20.92	100.0	%

1/	Includes square feet expiring in properties in joint ventures that are consolidated.

2/	Annualized Cash Revenue is June, 2009 cash rental revenue (base rent plus operating expense pass through revenue excluding straight-line rental income) multiplied by 12.


Highwoods Properties, Inc.		35		6/30/09

Joint Venture Acquisition and Disposition Activity

Dollars in thousands

Acquisitions

Name

Own %

Market

Type

Date
Acquired

Square
Footage

Total
Cost

First quarter 2009:

None

Second quarter 2009:

None

Dispositions

Name

Own %

Market

Type 1/

Date
Sold

Square
Footage

Occupancy

Gross Sales
Price

First quarter 2009:`

None

Second quarter 2009:

Automatic Data Processing

22.8%

Baltimore

04/15/09

110,000

100.0

14,800

Second quarter totals

110,000

100.0

14,800

1/	The letter “O” represents Office.


Highwoods Properties, Inc.		36		6/30/09